4 ms·
Actually that's a pretty big deal. Financial institutions have far more stringent rules than an average company regarding communications. Analysts must be shie
by CaptainZapp 10y ago
Actually that's a pretty big deal. Financial institutions have far more stringent rules than an average company regarding communications.
Analysts must be shielded by "Chinese walls" from traders. Just imagine what a trader can do if he gets a 20 minute head start (or just a few pertinent bullet points) of an influential report, which is about to be published. Look up 'front running' for details.
Communications within financial companies and between banks and outside entities are pretty heavily regulated. And for very good reason.
- whatupmd 10y agoYou are right that financial crimes are a big deal. However the solution to criminality is not to create a surveillance state.
- wadeboggs 10y agoI mean it's one solution. What is the solution?
- na85 10y agoTo disincentivize huge salaries for people who create zero value, and just move money from point A to point B.
- dagw 10y agoMoving something that is currently at A but should be at B absolutely creates value.
- ue_ 10y agoWell, depends on your definition of value. In Marxian economics, with the exception of natural resource, value is created by labour, and commodities have both a use value and exchange value.
- dagw 10y agoBut the value of commodities aren't fixed, but vary in both time and location. Much as taking a lump of gold and turning into a ring adds value to the gold, so does bringing the gold from the goldmine to the jeweler.
- nerdponx 10y agoThis just isn't true. Don't let Marx cloud your understanding of Smith. Value is created when someone is willing to pay for something to get done, and that something gets done at a cost less than or equal to their willingness to pay. If somebody A is willing to pay for money to be moved, then as long as somebody B is there to move that money, then somebody B is likely generating value by doing so.
- ue_ 10y agoMy mistake, you're right. Going to correct my comment.
- 0x445442 10y agoLet's start with actually prosecuting those that break current laws without regarding color of skin or size of bank account.
- CaptainZapp 10y agoWell, banks sure have a solution for such problems. They call it self-regulation. [Hey you! Yes you at the back! Stop laughing...]
- ENOTTY 10y agoA surveillance state is exactly what the financial companies have created within their walls. Typically, every keystroke is logged.